Air India raises fuel surcharge as Iran war pushes up jet fuel prices

Air fares are set to rise after the Air India Group announced it will introduce a ₹400 fuel surcharge on domestic flights, while international passengers will have to pay an additional $10–50 over the existing surcharge amid a surge in aviation fuel prices.

“Since early March 2026, aviation turbine fuel [ATF], which accounts for nearly 40% of an airline’s operating costs, has seen significant price escalation due to supply interruptions. In India, this pressure is amplified by high excise duty and VAT on ATF in major metro cities such as Delhi and Mumbai, magnifying the cost impact and placing substantial strain on airline operating economics,” the Air India Group said in a press statement. The Group includes Air India and Air India Express.

The new fuel surcharges are being implemented in three phases.

The statement added that the airline will review its surcharges periodically.